Quiz 2: Contract / Payment Terms

Which of the following standard clause governs the legal jurisdiction under the contract ?

• Termination

• Assignment

• Confidentiality

• Governing Law & Arbitration

Where in the contract stated about the guaranteed specifications and also on the Invoicing quantity?

• Deal Done

• Quantity and Quality Clause

• Guaranteed Specifications Clause

• Frame Contract

Which of the following is not part of “Force Majeure” event ?

• War

• Cargo off-specification

• Riot

• Terminal on fire

What constitute as a valid contract ?

• Made voluntarily

• Happened between two or more competent parties

• Exchanged with something of value

• All of the above

What is Composite ship tank sample?

• Sample taken from each ship tanks individually

• Sample obtained by taking the cargo from shoretank before loading

• A sample obtained by mixing all the cargoes from individual ship tanks into 1 sample

• Sample taken after cargo in the tank has been filled to approximately 1 foot high

Which of the following is the most secure Payment mode for the Seller ?

• Documentary Credit (LC)

• Open Account

• Advanced Payment

• SBLC

Which of the following carry the most risk to the seller in terms of payment mode ?

• Documentary Credit (LC)

• Open Account

• Advance Payment

• SBLC

LC Payments is based on ?

• Payment is based on actual physical goods conditions

• Payment is based on documents only not on goods

• Payment is based on documents and actual physical goods conditions

• Payment is based on agreement of both parties (seller & buyer) irregardless of actual physical goods conditions

Which of the following payment term show the correct level of risk to SELLER from min risk to max risk?

• Advance payment, documentary credit, open account

• Open account , documentary credit, advance payment

• Documentary credit, open credit, , advance payment